GST shortfall this year at Rs 2.35 lakh cr, most of it due to pandemic: Govt
Finance Minister Nirmala Sitharaman told states during the GST council meet on Thursday that GST shortfall is only for the current fiscal.
Ajay Bhushan Pandey, Revenue Secretary said GST shortfall in FY21 at Rs 2.35 lakh crore of which only 97,000 crore due to implementation of GST while the rest is due to the Covid-19 pandemic. He went on to add that the Attorney General has opined that shortfall in GST collections cannot be met from the Consolidated Fund of India.
The pandemic has severely impacted GST collection, the Revenue Secretary said after the meeting of the GST council that lasted for five hours. Ajay Bhushan Pandey added, "Rs 1.5 lakh cr due to states for April-July in GST compensation."
Union Finance Minister Nirmala Sitharaman said two options of compensating states were discussed during the GST council meeting. She went on to say that options discussed for meeting GST shortfall are only for the current fiscal and that the GST council will look into the issue again in April of next year.
Referring to the novel coronavirus pandemic, Finance Minister Sitharaman said, "Act of God may result in contraction of the economy this fiscal."